"Safe" high yielders - stocks, ETFs, CEFs, REITs, MLPs, etc - post your favorites!

[Genester]

For those of us looking to generate income that is reasonably safe in the long-term, would love to hear your ideas/favorites... thanks in advance!

[fenders53]

This should be a good thread over time. I am not recommending purchase of any of them right now. A quick look at the charts and it is easy to see the price ranges they stay within most of the time. I won't retype everything from the other thread but a few of my favorites are.

RQI- Yield tends to be in the 6-7% range when not at an extreme. Excellent management. Ran my Cowen and Sterns. They have survived some bad times and never went BK to my knowledge. RQI anyway. They run other funds that are respected.

ARCC- Ares Capital. Yields often in the 8% range. A lot of articles on Seeking Alpha. That is where I talked myself into buying this one.

With either of these two you will get bit if your chase a high share price. Again, look at a chart and imagine you bought and held for 5 years. You could have held it for 15 years and got the yield but any sort of bond market scare and you'll watch several years of yield disappear in a month. Entry price matters. If you buy after one of these events you might find yourself sitting on a hyper growth tech stock gain in six months and wonder what to do. That's a personal choice but I take my 40% and park it a 4% dividend stock and wait for some sort of dip. It will happen eventually.

JPS- A Nuveen fund. Just a good Preferred stock fund. Pays about 6% and pretty consistent. I don't know what they were in pre 2008 financial crisis but I am going to guess financials. Rock solid before and after. I just hold this one for now because I don't have a better idea and it pays a better div that almost all my common stock holdings.

I'll dig up a few more I don't recall the tickers for. Hopefully others will offer up some more non-yield traps.

[fenders53]

DNP is one I don't think is overvalued now. Not only do you get the security of a preferred stock fund but it is a utility stock preferred fund. You can buy this one and forget it. If the share price goes more euphoric than a preferred warrants it probably needs sold, but you can just just ignore it and keep collecting your 6% yield if you wish. Utilities are underperforming the past year so this one probably has a little upside in the share price at some point over the next year.

I'll offer up ENB as a safe high yielding stock. It's at the top of the buy range though. A lot safer at sub 37. IMO it's very safe for the next few years. I have no prediction for anything oil related 5 years from now.

BTI looks good here to. I doubt the stock is gong anywhere but the very high yield is pretty safe.

[ken-do-nim]

Here's what I'm currently invested in that has a 7%+ yield:

• OXLC, 11.34% yield
  
• RA, 10.76% yield
  
• NLY, 10.37% yield
  
• PCI, 9.35% yield
  
• PFL, 8.66% yield
  
• ARCC, 8.21% yield
  
• RIO, 7.94% yield (misleading, it's a semi-annual payer that jumps around payout-wise, but it's definitely good)
  
• HTGC, 7.41% yield, however this is a DGI and they try to raise their dividend often
  
• MO, 7.16% yield, also DGI
  
• HRZN, 7.01% yield
  

Now let's see if any are any good I'm going to use a 10 year DRIP timeframe and see how they do.

First, a baseline. Let's say you invested $10,000 in AT&T 10 years ago. How much would you have now? You'd have $16,698.77. T right now is sporting a 7.40% yield, so it's pretty comparable to these.

OXLC - not in their database, but over the last 10 years it has dropped from $20 to $7.34 so while it's on a sweet run now, long-term um no.

RA - starting date of 12/4/2016, but even with a much shorter time frame your $10k is worth $17009.89. In a 10 year frame likely much better; a base hit, maybe even a double.

NLY - $15,422.59. Swing and a miss! (since it didn't do better than T) I have it but I've already started to trim it.

PCI, PFL - mutual funds; not in their database

ARCC - $30,834.96 yowza!! I think that's a double.

RIO - not in their database, but up from $56 to $87 in the last 10 years, not including dividend reinvestment, so likely a triple

HTGC - $42,028.93 home run into the Monster seats!!!

MO - $31,166.97, another 2-bagger.

HRZN - not in their database. Up from $15.6 to $17.48 in the last 10 years, so with dividend reinvestment probably a solid hit

****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Oh, and ORC, which I cut last month, of the 15.66% nosebleed yield? Just $12,827.47 although it started in 2013. I say ground-into-double-play.

[fenders53]

Here is my draft dividend chaser cheat sheet. You can print it and put it in your wallet.

10%+ Ha, you fell for it. We'll take your money soon enough and the market doesn't even have to dip much.

8%- Cross your fingers and it might work out. You'll definitely get killed when the market dips but maybe you'll sell before.

6%- Keep your eye on it but there are some good ones out there. The down market beatings will be tolerable lol.


Just my personal experience. I have never once had a 10% yield end well. Got lucky on some 8% but didn't hold for long.

[NilesMike]

(08-02-2021, 05:40 PM)ken-do-nim Wrote: Here's what I'm currently invested in that has a 7%+ yield:

• OXLC, 11.34% yield
  
• RA, 10.76% yield
  
• NLY, 10.37% yield
  
• PCI, 9.35% yield
  
• PFL, 8.66% yield
  
• ARCC, 8.21% yield
  
• RIO, 7.94% yield (misleading, it's a semi-annual payer that jumps around payout-wise, but it's definitely good)
  
• HTGC, 7.41% yield, however this is a DGI and they try to raise their dividend often
  
• MO, 7.16% yield, also DGI
  
• HRZN, 7.01% yield
  

Now let's see if any are any good  I'm going to use a 10 year DRIP timeframe and see how they do.

First, a baseline.  Let's say you invested $10,000 in AT&T 10 years ago.  How much would you have now?  You'd have $16,698.77.  T right now is sporting a 7.40% yield, so it's pretty comparable to these.  

OXLC - not in their database, but over the last 10 years it has dropped from $20 to $7.34 so while it's on a sweet run now, long-term um no.

RA - starting date of 12/4/2016, but even with a much shorter time frame your $10k is worth $17009.89.  In a 10 year frame likely much better; a base hit, maybe even a double.

NLY - $15,422.59.  Swing and a miss! (since it didn't do better than T)  I have it but I've already started to trim it.

PCI, PFL - mutual funds; not in their database

ARCC - $30,834.96 yowza!!  I think that's a double.

RIO - not in their database, but up from $56 to $87 in the last 10 years, not including dividend reinvestment, so likely a triple

HTGC - $42,028.93 home run into the Monster seats!!!

MO - $31,166.97, another 2-bagger.

HRZN - not in their database.  Up from $15.6 to $17.48 in the last 10 years, so with dividend reinvestment probably a solid hit

****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Oh, and ORC, which I cut last month, of the 15.66% nosebleed yield?  Just $12,827.47 although it started in 2013.  I say ground-into-double-play.

Every one of those has drawdowns of>35%, no thanks.

[fenders53]

We have to educate ourselves. How do they pay 5 to 10X of a 10yr treasury yield when they don't manufacture anything? The answer is usually excessive use of leverage or they are loan sharks hoping the sketchy borrower stays solvent. The well managed ones are more likely to not cross the line. They have a 20 year chart to view. The rest go to zero and are replaced with the new.

The FED saved most extreme high yielders from free fall last March by propping up the bond market. We will see what happens when they eventually taper.

[ChadR]

MO is my favorite high yielder right now. Once a stock hits 8% yield or higher, I get scared and usually sell.

[divmenow]

(08-02-2021, 07:29 PM)ChadR Wrote: MO is my favorite high yielder right now.  Once a stock hits 8% yield or higher, I get scared and usually sell.

 If MO got to 8% I would load the boat. As one of the dividend stocks, it also maintains a long-term dividend payout ratio of around 75%, translating into a 7%-plus dividend yield — one of the highest yields among the blue chips. Today, its forward P/E and P/S ratios stand at 10.35 and 4.16, respectively.

Like you, MO is one of my top dividend stocks to buy for safety and income. And it has raised its dividend 55 times over the last 51 years. You don't get any better then that for an Aristocrats. 

[divmenow]

(08-02-2021, 05:40 PM)ken-do-nim Wrote: Here's what I'm currently invested in that has a 7%+ yield:

• OXLC, 11.34% yield
  
• RA, 10.76% yield
  
• NLY, 10.37% yield
  
• PCI, 9.35% yield
  
• PFL, 8.66% yield
  
• ARCC, 8.21% yield
  
• RIO, 7.94% yield (misleading, it's a semi-annual payer that jumps around payout-wise, but it's definitely good)
  
• HTGC, 7.41% yield, however this is a DGI and they try to raise their dividend often
  
• MO, 7.16% yield, also DGI
  
• HRZN, 7.01% yield
  

Now let's see if any are any good  I'm going to use a 10 year DRIP timeframe and see how they do.

First, a baseline.  Let's say you invested $10,000 in AT&T 10 years ago.  How much would you have now?  You'd have $16,698.77.  T right now is sporting a 7.40% yield, so it's pretty comparable to these.  

OXLC - not in their database, but over the last 10 years it has dropped from $20 to $7.34 so while it's on a sweet run now, long-term um no.

RA - starting date of 12/4/2016, but even with a much shorter time frame your $10k is worth $17009.89.  In a 10 year frame likely much better; a base hit, maybe even a double.

NLY - $15,422.59.  Swing and a miss! (since it didn't do better than T)  I have it but I've already started to trim it.

PCI, PFL - mutual funds; not in their database

ARCC - $30,834.96 yowza!!  I think that's a double.

RIO - not in their database, but up from $56 to $87 in the last 10 years, not including dividend reinvestment, so likely a triple

HTGC - $42,028.93 home run into the Monster seats!!!

MO - $31,166.97, another 2-bagger.

HRZN - not in their database.  Up from $15.6 to $17.48 in the last 10 years, so with dividend reinvestment probably a solid hit

****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Oh, and ORC, which I cut last month, of the 15.66% nosebleed yield?  Just $12,827.47 although it started in 2013.  I say ground-into-double-play.

Man not to be critical but I don't like a lot on your list lol . It seems your eyes light up when you see 11% yield without knowing the risks . 
 
For example OXLC pays like 6 cents lol. It may pay 11% which is a no no, but that yield of a whopping 6 cent payout isn't worth it. And I'm not a fan of investing in CLO's. For every $1 in assets OXLC manages, a bit more than 16 cents goes toward interest expenses, as well as advisory, administrative and other fees. That means OXLC needs to earn a 16% return on its investments just to pay the bills! Wow just imagine when that market crashes.

MO and RIO good and own them. The rest just not my cup of tea    If you pull up a chart on most they are hit new lows 3-4 times over those 10 years. Maye if you time they right you can make money, but they already had there big runs and are topping out. . 

And if you put 10,000 in just about every SP500 stock over the last 10 years then you doubled or tripled your money lol 
 
10,000 in V 10 years ago is now worth 120,000 

[ken-do-nim]

(08-02-2021, 08:46 PM)divmenow Wrote: And if you put 10,000 in just about every SP500 stock over the last 10 years then you doubled or tripled your money lol 
 
10,000 in V 10 years ago is now worth 120,000 

Not sure your point on that last part.  The thread topic is high yielders.

[ken-do-nim]

(08-02-2021, 06:26 PM)NilesMike Wrote:

(08-02-2021, 05:40 PM)ken-do-nim Wrote: Here's what I'm currently invested in that has a 7%+ yield:

• OXLC, 11.34% yield
  
• RA, 10.76% yield
  
• NLY, 10.37% yield
  
• PCI, 9.35% yield
  
• PFL, 8.66% yield
  
• ARCC, 8.21% yield
  
• RIO, 7.94% yield (misleading, it's a semi-annual payer that jumps around payout-wise, but it's definitely good)
  
• HTGC, 7.41% yield, however this is a DGI and they try to raise their dividend often
  
• MO, 7.16% yield, also DGI
  
• HRZN, 7.01% yield
  

Now let's see if any are any good  I'm going to use a 10 year DRIP timeframe and see how they do.

First, a baseline.  Let's say you invested $10,000 in AT&T 10 years ago.  How much would you have now?  You'd have $16,698.77.  T right now is sporting a 7.40% yield, so it's pretty comparable to these.  

OXLC - not in their database, but over the last 10 years it has dropped from $20 to $7.34 so while it's on a sweet run now, long-term um no.

RA - starting date of 12/4/2016, but even with a much shorter time frame your $10k is worth $17009.89.  In a 10 year frame likely much better; a base hit, maybe even a double.

NLY - $15,422.59.  Swing and a miss! (since it didn't do better than T)  I have it but I've already started to trim it.

PCI, PFL - mutual funds; not in their database

ARCC - $30,834.96 yowza!!  I think that's a double.

RIO - not in their database, but up from $56 to $87 in the last 10 years, not including dividend reinvestment, so likely a triple

HTGC - $42,028.93 home run into the Monster seats!!!

MO - $31,166.97, another 2-bagger.

HRZN - not in their database.  Up from $15.6 to $17.48 in the last 10 years, so with dividend reinvestment probably a solid hit

****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Oh, and ORC, which I cut last month, of the 15.66% nosebleed yield?  Just $12,827.47 although it started in 2013.  I say ground-into-double-play.

Every one of those has drawdowns of>35%, no thanks.

Right, these high yielders suit my needs at present.  The really safe capital preservation funds for when I'm retired I haven't researched yet, but I doubt they fall into the "high yield" bucket.  I interpret high yield as 7%+, others may think differently about it.  Other than endorse MO, I haven't seen any other recommendations, although in other threads I see a lot of forum members like BTI.